The environment for the Swiss property market has continued to improve with the slowdown in inflation, the significantly brighter interest rate environment and strong demand, particularly in the residential and healthcare sectors.
Patrimonium Investment Foundation’s property investment groups – ‘Residential Property Switzerland’ and ‘Healthcare Property Switzerland’ – are ideally positioned and have excellent growth and yield potential with their current projects and portfolios.
Both investment groups will carry out capital increases in autumn 2024 to finance further growth.
Capital Increase “Swiss Residential Properties” investment group
Target volume: CHF 50 million
Subscription deadline: 31 Oct. 2024
Capital call: 15 Nov. 2024
Issue price: NAV 30 Nov. 2024 plus 0.5% distribution comm.
Issue claims: 30 Nov. 2024
The Swiss residential property market is benefiting from strong immigration and demand for housing with falling vacancy rates and rising rents.
The portfolio of the ‘Residential Property Switzerland’ investment group has an investment volume of CHF 924 million, is geographically well positioned in the cities and conurbations of Lausanne, Geneva, Berne and Basel in particular in the lower and medium rental price segments and pursues the goal of long-term value appreciation (average annual investment return over the last 5 years: +4.7%). The proportion of residential properties is 85%.
With development projects in Muttenz, Baar, Fribourg, Lugano, Kloten, Birsfelden and Crissier as well as an attractive acquisition pipeline, the investment group has excellent growth potential.
The capital increase will be used to finance the current construction projects in Basel, Muttenz and Bellinzona, to finance the development pipeline and to make acquisitions.
Capital increase “Swiss Healthcare Properties” investment group
Target volume: CHF 50 million
Subscription deadline: 31 Oct. 2024
Capital call: 15 Nov. 2024
Issue price: NAV 30 Nov. 2024 plus 0.5% distribution comm.
Issue claims: 30 Nov. 2024
The demographic development of the Swiss population is leading to increasing demand for retirement homes and medical facilities. The ‘Healthcare properties Switzerland’ investment group is very well positioned in this growing market.
High EBIT margins (core-shell concept) and a good net cash flow yield of around 4% (average annual investment return over the last 5 years +4.2%) with long-term and fully indexed rental agreements (WAULT 17 years) make this investment group particularly attractive for investors with an affinity for the healthcare market.
The portfolio comprises an investment volume of CHF 433 million diversified across 16 properties. The proportion of medical use is 73% and the proportion of retirement living is 17%.
The capital increase serves to finance the growth potential of the investment group with an attractive acquisition pipeline and ongoing new construction projects in Kriens (retirement flats) and Bülach (health centre) as well as expansion and development projects (Au Parc Hôtel Fribourg, Brunnen and En Chise in Crissier), with an investment volume of over CHF 100 million.